Best Place, Inc. v. Penn America Insurance Co.

920 P.2d 334 (1990)

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Nature of the Case

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Facts

P operated a bar/nightclub in Waikiki. It was insured against fire under with D. A fire broke out and destroyed the nightclub. Police and fire officials concluded that arson was the cause of the fire. D discovered that P lost money each and every month it was in operation. Many of the nightclub's bills were unpaid, but the manager and majority stockholder of the nightclub, Sara Hernandez, paid the fire insurance premium with a cashier's check three days prior to the fire. D insisted that Hernandez submit to an examination under oath and turn over requested documents. Hernandez failed to submit to an examination under oath and did not turn over the requested documents. D refused to pay. P sued D alleging: (1) breach of contract; and (2) tortious breach of the implied covenant of good faith and fair dealing. Prior to trial, both parties filed a number of motions in limine. The circuit court granted D's motion to exclude all evidence dealing with the tort of bad faith, as well as D's motions to exclude evidence of the settlement offer. P took an interlocutory appeal.